Four listed property funds worth their salt
The Australian listed property sector has delivered what can only be described as a stellar performance over the past three years to August 2018, returning just over 32 per cent versus roughly 17 per cent for Australian direct property, with an average FE Crown Rating across the sector of three.
And while it is widely accepted that an allocation to both listed and direct property is a sensible strategy within any long-term, diversified portfolio, with the aid of FE Analytics, advisers and their clients can discover those fund exposures that stand out from the rest of the pack.
1) Folkestone Maxim - A-REIT Securities
Boasting a five-Crown fund rating from FE and a total three-year return of 45.7 per cent is the Folkestone Maxim - A-REIT Securities fund, the objective of which is to outperform the S&P ASX 300 A-REIT Accumulation Index by 1.5 per cent, after fees, over rolling three-year period.
According to FE Analytics, the basic premise of Folkestone Maxim’s investment philosophy is that there is a close relationship between the real estate market cycle and the economic cycle.
Having regard to what is happening in the Australian economy, Folkestone Maxim expects that some of the real estate sub-sectors – for example, commercial, industrial and retail – are likely to offer better value than others.
Accordingly, the manager’s top-down research focuses on identifying those sub-sectors which are likely to add value.
2) Resolution - Core Plus Property Securities
Awarded a four-Crown fund rating from FE is the Resolution - Core Plus Property Securities strategy, a fund which aims to achieve an annual total return that exceeds the total return of the benchmark after fees on a rolling three-year basis, while generating a consistent income return.
The strategy has delivered a total return of just over 41 per cent for the three years to August 2018, data from FE Analytics shows.
While the fund seeks to give investors access to the benefits of listed real estate diversification through a professionally managed portfolio of A-REITs, the manager also seeks to further enhance returns by investing up to 20 per cent of the fund in real estate entities listed on international stock exchanges.
3) OnePath - Optimix Wholesale Property Securities Trust
Carrying a five-Crown rating is the OnePath - Optimix Wholesale Property Securities Trust, which has also managed to deliver a total return of about 41 per cent over the past three years.
The trust aims to achieve returns (before fees, charges and taxes) that exceed the S&P/ASX 300 Property Trusts Accumulation Index, over periods of five years or more.
4) Cromwell - Phoenix Property Securities
Posting a total return of just over 40 per cent over the past three years and rewarded with a five-Crown fund rating is the Cromwell - Phoenix Property Securities strategy.
The fund aims to provide investors with a total return, after fees, in excess of the S&P/ASX 300 A-REIT Accumulation Index over rolling three-year periods while delivering lower total risk (as measured by the volatility of returns) over this period.
The Cromwell - Phoenix Property Securities strategy carries an FE Risk Score of 97. (The FE Risk Score defines risk as a measure of volatility relative to the S&P ASX 200, which has a risk rating of 100. Instruments more volatile than the benchmark have a score above 100 and vice versa, providing an indication of relative risk.)
Recommended for you
Once the AMP advice sale to Entireti is completed, the size of the combined licensees will be almost double that of the second-largest licensee Count, and the deal is being positively received by commentators and shareholders.
With business owners very rarely planning their exit from the advice practice in advance, three experts underscore why succession planning is critical for long-term success.
A new report has unearthed seven key megatrends that financial advisers need to prepare for to stay ahead of the game and not be left behind by peers.
The rise of self-licensed financial advisers is creating a “once in a generation” opportunity for platforms as they are prompted to select their platform of choice for the first time.
